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MODERN MINING
November 2016
MINING News
Gold Fields Limited has announced the
Reinvestment Plan for the Damang gold
mine in Ghana which will extend the life
of mine (LOM) by eight years from 2017 to
2024. The Plan entails Gold Fields invest-
ing US$1,4 billion (operating and capital
expenditure) over the LOM. It will enhance
the Group’s presence in one of its key
operating regions and will result in signifi-
cant social benefits for Ghana, including
the creation and preservation of 1 850
direct jobs.
Over the LOM, a total of 165 Mt will be
mined, with 32 Mt processed at a grade of
1,65 g/t, resulting in total gold production
of 1,56 Moz. Mining and processing costs
are estimated to average US$3,60/t and
US$16,25/t, respectively while all-in costs
(AIC) are forecast to average US$950/
oz. The benefits of the Development
Agreement (signed between Gold Fields
and the Government of Ghana in March
2016) have been key inputs into the
Plan and enhance the economics of the
project.
Since operations at Damang com-
menced in 1997, the mine has produced in
excess of 4,0 Moz, sourced from multiple
open pits. Production from the Damang Pit
Cutback (DPCB) came to an end in 2013,
and since then mining has focused on the
margins of the Damang pit (the Huni, Juno
and Saddle areas), as well as lower grade
satellite deposits. The decline in produc-
tion since 2013 has been exacerbated by
variations in grade in the northern and
southern extremities of the DPCB and the
satellite pits where grades have been lower
than expected.
Consequently, a strategic review of
Damang commenced in 2015 which iden-
tified that Gold Fields should return to
mining the higher grade core of the main
Damang orebody.
The Reinvestment Plan entails a major
cut back to both the eastern and western
Night view of the Damang processing plant. Gold Fields is investing US$1,4 billion at
the mine to extend its life by eight years from 2017 to 2024 (photo: Gold Fields).
Gold Fields to spend US$1,4 billion at Damang
walls of the DPCB. The cut back will have a
total depth of 341 m, comprising a 265 m
pre-strip to access the base of the existing
pit. This will be followed by a deepening
of the pit by a further 76 m which will ulti-
mately provide access to the full Damang
orebody including the high grade Tarkwa
Phyllite lithology.
To provide short term ore supply while
the Damang pre-strip is in progress, min-
ing will continue at the Amoanda and
paleaoplacer satellite pits (Lima South,
Kwesi Gap and Tomento East). In addition,
the plant feed will be supplemented by
low grade surface stockpiles.
Mining will be undertaken by two
mining contractors, with negotiations cur-
rently at an advanced stage. At this stage,
the contractors are expected to be mobil-
ised early in 2017.
Apart from the waste strip, the only
other significant capital required is for
the construction of the Far East Tailings
Storage Facility (FETSF) as the existing tail-
ings storage facility (TSF) is approaching
full capacity. An interim 2,5 m raise has
commenced on the TSF, which will provide
for an additional 3,6 Mt tailings capacity
and is due for completion by the end of
November 2016.
Stage 1 of the new FETSF is planned
for completion by the end of 2017 and
will provide 20 Mt capacity. Further lifts of
the FETSF will cater for all tailings for the
new LOM. Only minor capital work will be
required on the Damang processing plant,
mostly due to replacement of the SAG mill
shell in 2018.
Regal Resources appoints Chief Operating Officer
Australia’s Regal Resources has announced
that Adam Smits has been appointed Chief
Operating Officer and Executive Director.
Smits will provide technical input to the
board whilst leading the development of
the company’s flagship Kalongwe Cu-Co
project in Katanga in the DRC. Kalongwe
hosts a near surface oxide resource of
302 000 tonnes contained Cu at an average
grade of 2,72 % Cu that also includes 42 000
tonnes contained Co.
Smits is a mechanical engineer with a
successful 20-year career across Australia
and for the past 10 years in francophone
West Africa where he has held a variety of
project development and operational roles.
Most recently, he guided the Sissingué
project in Côte d’Ivoire (owned by Perseus
Mining) to construction commencement.
Regal has released the results of a Scoping
Study for Kalongwe. The study outcomes are
highly positive and indicate the strong eco-
nomic viability for developing a standalone,
low capex, open-pit mining operation.